Wabash has settled the Missouri product-liability case that produced one of trucking’s biggest-ever “nuclear verdicts,” closing a costly, high-profile chapter tied to a 2019 underride crash involving a 2004 trailer. The agreement comes after a St. Louis jury’s $462 million award in 2024 — later trimmed by the court to about $120 million — and removes the immediate trial risk hanging over the trailer maker.
While terms weren’t disclosed, the company’s filings indicated the resolution would unwind a portion of previously booked charges associated with the verdict. For fleets and equipment buyers, that means the supplier enters the fourth quarter with cleaner optics on legal exposure — a key consideration as customers weigh multi-year trailer commitments and warranty coverage.
Even with the legal cloud clearing, Wall Street isn’t declaring victory. On Friday, Oct. 17, DA Davidson lowered its third-quarter EPS estimate for Wabash to a loss of $0.51, maintained a Neutral stance and set a $9 price objective, citing a softer demand backdrop and execution risks. The message: settling the case reduces tail risk, but it doesn’t erase a down-cycle in trailers.
Investor commentary echoed that caution. An Oct. 17 note from StockStory flagged pressure points such as order softness and a shrinking backlog — the types of fundamentals that will matter more now that the legal storyline is fading. Expect investors to judge the company on the cadence of new orders, parts-and-service growth and any signs that large enterprise customers are reaccelerating replacement or expansion plans.
The market’s initial read was muted: Wabash shares changed hands around $8.82 late Friday, Oct. 17, essentially in line with the updated $9 target and reflecting a “show me” posture until order books and margins turn.
Why it matters for trucking: the settlement helps stabilize a key OEM’s balance sheet and should curb immediate insurance and bonding costs tied to the case — a relief for dealers and fleets relying on consistent production slots and parts support. But the verdict’s legacy won’t disappear overnight. Plaintiff lawyers now have a recent playbook for targeting legacy equipment designs, and carriers operating older trailers can expect sharper scrutiny of inspection, maintenance and retrofit documentation. For safety and risk teams, this is a nudge to revisit rear-impact guard specs, upgrade policies, and contractual indemnities with equipment providers to ensure responsibilities are crystal clear across the lifecycle.
Bottom line: The courtroom saga is over; the business cycle isn’t. Wabash has removed a destabilizing overhang, but the next catalysts for fleets and investors will be evidence of demand recovery, backlog rebuild and pricing discipline — not legal headlines.
Sources: FreightWaves, Defense World, StockStory
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